HARM

The Unwinding of the Moral Hazard Trade

"Of course, as with any government action, the unintended consequence has been a complete lack of trust on the part of investors who have now seen that the government will leave them out in the cold if it suits their agenda."

The government SHOULD leave such "investors" out in the cold. In fact it should not be bailing out *anyone*, barring FDIC/NCUA-insured retail depositors.

Why should being rich and politically connected automatically guarantee a taxpayer bailout? Is that what you call "capitalism"? I must have missed class the day they taught socialism-for-the-rich = free-market capitalism.